Whether State Farm Life Insurance Company of Bloomington, Ill. can parlay its success as a property and casualty insurance company into creating a strong asset management business is unclear, but the company's announcement that it will offer wealth management services is a move in that direction, according to industry observers.

"It's a strategy that many of their competitors have taken in transitioning to financial service products," said Dennis Galant, a consultant with Cerulli Associates of Boston. "Of course with insurers, their knowledge of life products bodes well with estate planning. The high-net-worth tends to be a natural fit."

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